Over two thirds of SME lenders do not believe that the autumn budget will address their concerns

POSTED: 20th November 2017

IN: Newsroom

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Just under three in ten (29%) SME bosses would like to see this week’s Budget focus on investment in UK businesses

Over seven in ten (71%) of UK SMEs want more Government support during the Brexit process

Just under a quarter (24%) of UK SMEs believe Brexit will have a positive effect on their business, compared to just under a fifth (19%) this time last year

Over two fifths (45%) of business owners are happy the UK is leaving the EU

The latest Aldermore Future Attitudes report reveals that over two thirds (68%) of bosses in small and medium sized businesses (SMEs), representing 3.74 million firms in the UK, do not believe that the Autumn Budget will properly address their concerns, with one in five (20%) of these businesses saying they are not confident it will do this at all.

The study, which surveyed over a thousand business decision-makers across the UK, found that business owners are keen to see a number of announcements made during Phillip Hammond’s address. These include:

Announcement

Percentage of businesses

Government to invest more in UK businesses

29%

Preparation for a ‘no deal’ Brexit to ease concerns

26%

A business rate cut / rise in rate relief

21%

Incentivisation for business growth

18%

With Brexit likely to feature heavily in the forthcoming Budget, the research found that over seven in ten (71%) SMEs want the government to provide more information and support to guide them through the transition period.

Carl D’Ammassa, Group Managing Director, Business Finance at Aldermore, said: “This week’s Budget provides the perfect platform for the Government to highlight its backing and support for the small business community in the UK. SMEs are the backbone of the economy and it is vital they are given all the help possible given the current political and economic uncertainty.”

Despite the majority of businesses calling for more support, almost a quarter (24%) of firms think Brexit will have a positive effect on their business overall, an increase on this time last year (19%). A similar amount (27%) believe Brexit will have a negative effect, around the same as a year ago (26%).

The report also reveals that just under half (45%) of business owners feel ‘happy’ about leaving the EU, the same percentage as 12 months ago. A similar number of business owners said they were disappointed with the referendum result, with over two in five (43%) feeling this, marginally down from the 44% in Q4 2016.

Carl D’Ammassa, added: “Business owners are still unsure how Brexit negotiations will play out and it is not surprising their views and opinions are divided when it comes to the impact it will have on them. With this widespread uncertainty in mind, we urge all business leaders to spend time focusing on putting specific procedures in the place that will hopefully shield them from any and all negative outcomes that may come their way over the coming years.”

Research conducted by Opinium Research between 26 and 31 October 2017 with a nationally representative sample size of 1,008 senior decision makers in SMEs.

* SMEs figure – calculated using Federation of Small Business statistics that say the UK has 5.5m SMEs (2016 figures). Aldermore Future Attitudes research showed that 68% of SMEs are not confident that the Autumn Budget will properly address the concerns of SMEs. 68% of 5.5m = 3.74m

For further information about Aldermore, please review our Notes to Editors page